Do you think that prepaid cards for kids' are necessary? It depends upon the usage of credit cards. If credit cards are used wisely, then it can be an ease for parents and children equally.
After reaching certain age, children want independency. They go for shopping center with friends in place of their parents. Nowadays, they start driving and need money for gas and other requirements related to their daily life. Unfortunately, children are expanding more money compared to their older. Parents do not have money always to fulfill their requirement that is why; we introduced an option that is prepaid credit cards for kids.
For taking prepaid credit cards for kids, parents can apply in the name of kid and deposit money for activating the account. Children can use credit cards according to their requirements and the amount electronically gets deducted from the account. Parents can reload the children prepaid card through their current account or credit card.
Kid's prepaid credit cards are available with a number of advantages as follows:-
- This credit card is acceptable anywhere Visa or Master cards are accepted.
- In case of stolen or lost of this credit card, make a call to the credit card company for freezing the account to not be misused. The company transfers your remaining money to a new card.
- It also avails you facility of internet marketing.
- These prepaid credit cards for children are better than ordinary prepaid credit cards as there is a limit of spending money loaded on the card.
Apart from advantages, prepaid credit cards are available with some disadvantages as follows:-
- There is some activation fee depends upon the issuing authority. But, the charge depends upon the company to company as it may be one time activation fee or monthly accessing fee or some companies levy fees for loading money on the card.
- It takes couple of days to avail money for using when the money is transferred through a bank account.
- These prepaid credit cards do not help to improve your credit history as transactions are not reported to the credit bureaus.
Wisely use this credit card:
Make sure that the child's prepaid credit card is not being misused. Teach your children its merits and demerits.
Show your child the details and remaining balance of the card. And ask them rules and regulations of using it. Also tell them do's and don't of the card.
